Investors in Hong Kong Wary
Of Korea's Financial Stability

HONG KONG -- Joseph Yam, head of the Hong Kong Monetary Authority, said rising interest rates signal that local investors are nervous about the condition of South Korea's financial system.

In recent days, interbank lending rates for the Hong Kong dollar have edged higher as the Korean won has plunged. Investors "are more concerned whether or not Hong Kong will be the next one, and as a result they are being more careful about longer-term funding," said Mr. Yam in a briefing with foreign journalists. But he said...